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Sale, transfer or redemption of shares - 15 Pa. Cons. Stat. § 7525

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     § 7525.  Sale, transfer or redemption of shares.
        (a)  General rule.--The common shares of an association may
     be transferred only with the consent of the association and on
     the books of the association and then only to persons eligible
     to own shares in the association. No purported assignment or
     transfer of the shares shall pass to any ineligible person any
     right or privilege on account of the shares or any vote or voice
     in the management or affairs of the association.
        (b)  Redemption or conversion.--In the event a holder of
     common shares has done no business with an association for a
     period of 12 months or in the event the board of directors of an
     association finds that any of the common shares has come into
     the hands of any person who is not eligible for membership or
     that the holder thereof has ceased to be an eligible member, the
     holder shall have no rights or privileges on account of the
     shares or vote or voice in the management or the affairs of the
     association (other than the right to participate in accordance
     with law in case of dissolution and to receive the book or par
     value of the shares, whichever is less, in the event of its sale
     or transfer as provided in this subsection), and the association
     shall have the right at its option:
            (1)  to redeem the shares at their book or par value,
        whichever is less;
            (2)  to require the transfer of any such shares at such
        book or par value, whichever is less, to any person eligible
        to hold the shares; or
            (3)  to require the holder of any such shares to convert
        the shares into preferred shares of equal value.
     In exercising its right to redeem or to require the transfer or
     conversion of shares, if the holder fails to deliver the
     certificate evidencing the shares for cancellation or transfer,
     an association may cancel the certificate on its books and issue
     a new certificate for common or preferred shares, as the case
     may be, to the party entitled thereto.
        (c)  Preferred shares.--The preferred shares of an
     association may be transferred only on the books of the
     association, and the bylaws may provide that the association
     shall have the option, at any time, to redeem the preferred
     shares at par value, plus declared or accrued dividends.
        (d)  Notice on certificates.--Any restriction or option which
     an association places upon the transfer or sale of any of its
     outstanding shares and any association option retained thereon
     shall be printed on each share certificate.
        (e)  Force majeure.--A member shall not lose his membership
     in the association under this section by his failure to do
     business with it if the failure is due to an act of God unless
     the period of time involved is at least 24 months.

Last modified: November 27, 2007